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Press Release
PACRA Assigns Broker Fiduciary Rating to UBL Financial Services (Pvt.) Limited
Date: 01-Oct-25
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (01-Oct-25 ) | ||
Action | Initial | ||
Rating | BFR 2 | ||
Outlook | Stable | ||
Rating Watch | - |
Rating Rationale | Factor | Comment |
Ownership | UBL Financial Services Limited (UFSL) is a wholly-owned subsidiary of UBL Fund Managers Limited, which is part of the United Bank Limited (UBL) group. UBL, one of Pakistan's largest banks by market capitalization, provides UFSL with strong financial backing and ownership. | |
Governance | The Board of UBL Financial Services (Pvt.) Limited comprises four members, including Mr. Ahmad Khashe Lodhi (Executive Director & CEO), Mr. Mohammad Gohar (Nominee Director), Ms. Fatima Shahzad (Nominee Director), and Mr. Kashif Aziz Khwaja (Independent Director). | |
Management and Client Services | UFSL is building a client-focused framework supported by its parent's expertise. It is enhancing services with digital platforms ("UBL Invest" and a website) to complement branch onboarding. | |
Internal Controls and Regulatory Compilance | UFSL's compliance framework adheres to SECP rules, with AML/CFT and KYC/CDD procedures for clients. A Board Risk Committee oversees key market, credit, and operational risks. | |
Business Sustainability | The report revenue of ~PKR 145mln and profit of ~PKR 61mln are from legacy distribution operations. The rating anticipates future brokerage income will be adequate, based on financial projections. | |
Financial Sustainability | The financial sustainability of UFSL is anchored by the explicit and binding undertakings of its direct parent, UBL Fund Managers Limited (equity: PKR ~5.2bln as of June 2025). A formal Letter of Comfort provides a definitive capital commitment, ensuring comprehensive support for loss absorption, liquidity maintenance, and strategic initiatives. |
Key Rating Drivers |
About the Entity | |
Legal Structure | Private Limited |
Year of Establishment | 27-Feb-14 |
Type of License | Trading and Self-clearing |
Majority Ownership | UBL Fund Managers Limited |
Regulatory Disclosures | Analyst | Applicable Criteria | Related Research |
Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com |
Assessment Framework | Broker Fiduciary Rating | Jan-25 Methodology | Rating Modifiers | Apr-25 |
Sector Study | Brokerage Firms | Feb-25 |
Disclaimer | This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor. |